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The development of energy infrastructure will allow Argentina to save US$4.2 billion in imports in 2024.
On July 9th, Argentina will inaugurate the first segment of the new President Nestor Kirchner Gas Pipeline (GPNK), a crucial project for the development of Vaca Muerta, a formation that holds significant shale oil and shale gas deposits.
"On Sunday, with great pride, we will inaugurate this infrastructure project that will forever change the history of Argentina," said Gabriela Cerruti, the Presidency spokesperson.
Argentine President Alberto Fernandez and Vice President Cristina Fernandez-Kirchner, accompanied by the Economy Minister and Peronist presidential candidate Sergio Massa, will be present at the inauguration, which will take place within the context of July 9th, Independence Day, and the 40 years of democracy being celebrated in 2023.
The initial gas pipeline project dates back to 2014, during the second term of Cristina Fernandez (2007-2015). In 2012, she decided to expropriate 51 percent of the shares of the Spanish oil company Repsol in YPF, Argentina's largest hydrocarbon producer and a leading producer in Vaca Muerta.
����A game changer for Argentina over the rest of the decade will be pipelines that transport natural gas from Vaca Muerta to major urban centers (expected to be completed this year) that will ease costly LNG imports & new pipelines that will allow for exports. pic.twitter.com/NyZp16JGmz
In April 2022, the Fernandez administration announced the bidding for the project. Cerruti highlighted the record time it took to construct this first 573-kilometer section of the gas pipeline between the towns of Tratayen and Salliquelo.
"This will allow us to recover US$200 million this year alone in energy expenses. It will save US$4.2 billion in imports in 2024. Additionally, it has generated 50,000 jobs," she explained.
The GPNK traverses the provinces of Neuquen, Rio Negro, La Pampa, and Buenos Aires. This gas pipeline will be crucial for the evacuation of gas from Vaca Muerta, which is the world's second-largest unconventional gas reserve.
Argentina recognizes that developing Vaca Muerta is essential to achieve energy self-sufficiency and establish itself as an international supplier. On June 20th, the gas pipeline was filled and became operational.
The second phase of the gas pipeline involves extending the project to the town of San Jeronimo in the province of Santa Fe, enabling its connection with the Northeast Gas Pipeline (GNEA).